About one in five small and medium-sized firms are having problems finding suitable accommodation to run their business, a survey today shows.

Difficulties in finding a property with the right budget and in the right location are the most common problem areas.

Close to two-thirds of SMEs believe more flexible lease terms from landlords would help, as well as more availability of property close to transport links.

The annual survey, by accommodation firm Spacia, found 18 per cent of SMEs experienced difficulty.

While this is down from 32 per cent last year, Spacia said this still represented a "significant obstacle to small business growth" in the UK.

Director Stephen Barrie added: "The problems we identified in 2001's property monitor largely remain.

"If commercial property owners adopt a flexible approach to tenants it creates a win-win situation, helping the businesses of both."

Spacia's survey was based on research conducted by Taylor Nelson Sofres, which interviewed decision makers at 1,079 SMEs.